06 Nov How do you create a sustainable method for building wealth?
Building wealth is all about meeting your goals in life. Wealth is a tool to achieving your financial independence, and for many people it is their way to define how they want to spend their time, often in retirement.
Most people I meet say they want to do something about the future, but don’t know how to put it into place, or have the tools to do it well, or even the time to figure it out. We want to get it sorted, but it never reaches the top of the “to-do” list to actually get done.
We tell our clients, “building wealth is simple, its just not easy”. We get to know what is important to you, and your family, and can design a plan to build your wealth to meet your goals, that is based on you. By putting into place simple, understandable, and automatic plans we make building wealth easy.
The first, and sometimes hardest step to build wealth is to define your goals. Most people do not have “SMART” goals. So start by making your wealth goals SMART, Specific, Measurable, Achievable,Realistic & Time Based:
- Specific – What type of lifestyle do you want to have? Do you want to travel every year, overseas? How much would you want to spend on your hobbies now? Does your current income meet that? An avid diver might be able to estimate needing an additional $10,000 for equipment and travel to dive more. Get specific with your goals.
- Measurable – You cannot meet a goal if you cannot measure it. Set some real dollar values around what your dreams, and realities may look like, and you will be better empowered to reach for them. To “go diving more” is not very measurable, whereas “To go diving at least once a month below 15 m” is very measurable.
- Achievable – buying your own private island in the Pacific to go diving off may not actually be within your scope of possibilities, but being able to travel there once or twice a year might be.
- Realistic – Keep it realistic, but still stretching, keep it a dream so you keep pushing to get there. If you cannot dive due to medical reasons, then setting diving based goals may be de-motivational. Keep it real, while still something to build towards.
- Time-Based – To build wealth takes time, and having a clear understanding of when you want to achieve a goal is important to plan towards it. Going diving overseas next year may require a focused short-term saving effort, whereas building wealth to fund a lifestyle of diving may be a 20 year timeframe, giving you scope to build investments over time.
We ask the questions to help you clarify your goals, and to lay out the priorities. What is stopping you taking steps towards building your future? Most people tell us they just get busy with life. That is why we offer our service as your personal wealth coach, you have the clarity of a plan to reach your goals, and a friendly team keeping you on track and monitoring your progress. You can relax knowing that you have taken the right steps to build wealth for you and your family, and for the life you want to live. We keep you accountable to your plans, and focused on your goals, and reviewing them if they change to keep your wealth building on track.